Marshall Islands recognizes DAO as legal entity

The Government of the Marshall Islands passed the Decentralized Autonomous Organizations Act, which gives DAOs the right to register as legal entities. For the first time in world legal practice, a law has been passed giving decentralized autonomous organizations (DAO) the status of legal entities, provided that they identify themselves as a DAO LLC (limited liability company). Legislatively, DAOs will be divided into non-profit organizations and organizations created for profit. “The Republic of the Marshall Islands is proud to be at the forefront of technical jurisprudence and compliance worldwide,” said Marshall Islands Treasury Secretary Bransen Wase. DAO voting processes and their unique governance structure have been legally recognized. Procedures for legal registration of DAO in the Marshall Islands transferred to the local law firm MIDAO. The government has also established an investment fund to create a talent pool of people who understand the activities of the DAO. In 2020, the Marshall Islands announced plans to launch a national digital currency and selected the Algorand Foundation as its technology partner.